UK House Prices Forecast to Increase by 6.3% by End of 2025

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Latest Predictions Show Promising Outlook for Property Market

Investment platform easyMoney has revealed its predictions for house price growth in the near future. By looking at the UK House Price Index and Nationwide’s House Price Index, easyMoney used historical data about the property market to forecast potential future price growth.

2023 was considered a challenging year for the UK market, and the effects were seen during the end of 2023 and the beginning of 2024 with modest house price dips. The average price in August 2023 was £285,862, which had fallen to £280,673 by February 2024.

However, after months of consecutive drops, prices have started rising again. In March 2023, prices grew to an average of £282,776.

Looking at the increasing health of the UK housing market, easyMoney has forecast price growth of 6.3% by the end of 2025.

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What is the Outlook for UK House Prices in 2024 & 2025?

This house price forecast is based on historical market trends from January 2014 onwards. The easyMoney predictions also state that they anticipate the average house price to increase by 3.6% by this time next year, hitting an average of £292,838.

If house price growth follows easyMoney’s predicted trajectory of an increase of 6.3% by December 2025, UK house prices will sit at £300,559 on average.

Jason Ferrando, CEO of easyMoney, said: “The recent doom and gloom around the UK housing market has not been unjustified, but it could be argued that lots of industry voices have been far too quick to paint negative pictures while the economic outlook has been one of uncertainty.

“Time and time again, UK property has proven itself to be resilient in the face of external pressures, and while prices may dip for a while, they rarely ever crash and always bounce back quickly.

“This is what makes property such a sound and sensible investment and a significant step away from other, more volatile assets that are far more volatile in the face of perceived socio-economic pressures.”

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Why Are Property Market Forecasters More Optimistic?

At the end of last year, many forecasters expected marginal dips to continue, accumulating as an overall decline in house prices by the end of 2024. Industry experts such as Lloyds Bank, Rightmove and Zoopla all predicted price drops between -1% and -4% before the end of 2024.

However, in light of the promising indicators observed in the market during the first quarter of 2024, some forecasters updated their predictions to reflect the growing optimism. Savills projected a -3% fall by the end of 2024 in their initial forecast published in November 2023, but they recently upgraded this to a price increase of 2.5%. Other industry experts such as Knight Frank have also revised their pessimistic forecasts in line with the more optimistic outlook.

As mentioned, the average UK property price is growing month-to-month. EasyMoney also looked at mortgage-approved house price data from the Nationwide House Price Index, which displays how much buyers are borrowing. This data can be seen earlier than the official house price data, giving an earlier look at the changing state of the market.

To learn more about how to get into property investment the UK property market, take a look at our latest buy-to-let area guides, covering topics such as available investment property in Basingstoke and available investment property in Grimsby.